A&P reduces loss, focuses on turnaround in Q3
MONTVALE, N.J. - A&P announced that sales for the third quarter were $1.8 billion versus $2 billion in last fiscal year’s third quarter. Comparable-store sales decreased 4.9%. The company reported that loss from continuing operations was $181 million versus last year’s third quarter reported loss from continuing operations of $502 million.
Sam Martin, president and CEO, said, “We saw modest improvement in certain of our third quarter financial results due to the steps we’ve taken to implement our turnaround plan and the continued dedication of our talented associates. Chapter 11 will allow us to restructure our debt, reduce our structural costs, and address our legacy issues. With access to a significant amount of liquidity, we are making strategic decisions that will enable us to complete our turnaround and emerge with a new capital structure and an enhanced ability to provide value to our customers.”
A&P said that under the protection of bankruptcy, which it filed for last month, and a new management team, it continues to implement its turnaround plan. The plan includes reducing structural and operating costs, improving the A&P value proposition for customers and enhancing the store experience, the company said.
In a separate announcement, A&P reported that Hans Heer, GM of The Food Emporium business, has left the company. He has been a member of the company's executive team since 2006.
Dan Wodzenski, district manager of sales and operations for The Food Emporium, and The Food Emporium's operations team will report to Paul Hertz, EVP operations at A&P. In addition, The Food Emporium marketing and merchandising team will now report to Tom O'Boyle, A&P EVP.